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BizReport : Ecommerce : November 24, 2008

Etailers: Pricing is key this season

Competitive pricing is important all the time, but this holiday shopping season, competitive pricing is going to be more important than ever. Especially for online merchants. This, according to a new survey from Nielsen Online.

by Kristina Knight

Nielsen researchers have found that convenience is still the top reason for consumers to shop online but they found that competitive prices are becoming more important, especially when shopping for the kids. According to the report, 53% of consumers are looking at price points as a reason to shop online.

"Based on our survey findings, we believe holiday online sales will grow from 2007, but likely at a single-digit rate and representing the smallest increase we've seen since the online commerce market was born," said Ken Cassar, vice president of industry insights, Nielsen Online. "If there is a silver lining in these results, it is that consumers continue to view the online channel's principal value proposition as convenience, more than price, allowing retailers the opportunity to differentiate on service and selection. We expect consumers will be comparison shopping, particularly in categories where goods are high-priced. However, in moderate and low-priced categories, retailers may be able to offer prices that are simply competitive, potentially preserving some of the margin that might otherwise be lost this year."

Those surveyed reported that they plan to spend more of their holiday budgets online this year with toys, video games and books leading the way for online purchases.

Tags: ecommerce, ecommerce trends, holiday sales, online shopping

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